WALL STREET is fast deciding that gold is a sell, writes Adrian Ash at BullionVault. Because interest rates are set to rise sooner than they formerly guessed.
That view is only half-wrong. Central banks aren’t about to hike the returns on cash savings, which have been a wasting asset pretty much non-stop since 2007.
Commentary: Gold shares an inverse relationship with the U.S. Dollar, or really any “fiat” currency. If the central bank hikes interest rates to defend the value of the dollar, gold’s bull run will certainly take a rest.